Anil Ambani’s Reliance Communications (RCom) is getting into the Sri Lankan telecom market. To being with, it is learnt to have formed a JV with a local firm which will launch GSM mobile services in Sri Lanka by this year and subsequently other telecom services.
RCom is learnt to have decided to invest Rs 1200 crore in the JV in next 3 three years to set up a next generation integrated telecom network.
Sources said a special purposed vehicle of RCom has formed a JV with Sri Lankan firm Electroteks for the proposed telecom foray. RCom owns 74% equity in the JV, the maximum permissible shareholding by a foreign company in the Sri Lankan telecom industry.
Electroteks, controlled by its founder CEO BAC Abeywardana will control the remaining equity in the JV. An RCom spokesperson declined to comment.
Sources said the JV—Reliance Mobile Lanka—has received start-up GSM spectrum and the access code from the Sri Lankan authorities. RCom has also invited expression of interest from global vendors for the GSM lines in Sri Lanka.
The new venture targets a set up a network with a capacity in range of 5 million lines. Sri Lanka has population of 20 million. Nearly 40% of the population subscribe to telecom services.
The Sri Lankan foray follows a similar move by RCom in Uganda where it plans to introduce services by this year December end.
The investment in Uganda is estimated to be in range of Rs 1,600 crore. According to initial estimates, Reliance Mobile Lanka has set a target of generating revenue of Rs 2,000 crore after two years, EBIDTA margins, on completion of the integrated network rollout, are expected to be over 40%.
The Sri Lankan foray is a part of RCom’s strategy to expand its global optic network, enhance service offerings and start fully integrated telecom operations in some emerging markets with a total investment of $3 billion. Indian operator Airtel holds a licence to offer mobile services in Lanka.
Sources said RCom will follow a strategy similar to that in India of having an independent telecom infrastructure arm to develop the passive infrastructure like telecom towers and national long distance fibre of around 5,000 km.
They added that RCom may launch its “One Nation One Account” in Sri Lanka.
Under this plan, the customer is enabled to access all service categories, subject to hardware compatibility. It means, a customer using any service such as mobile phone, landline, Net, Wi-Max, DTH can log on to central server and access any service using his account.
Monday, 7 April 2008
Satyam to invest Rs 250 cr to open 104 screens by 2010
Multiplex chain Satyam Cineplexes plans to open 104 screens across the country in the next two years entailing an investment of Rs 200-250 crore.
"We have already acquired 65 screens at Haridwar, Rohtak, Mysore, Greater Noida, Ludhiana, Gurgaon and Jalandhar. We will spend between Rs 200-250 crore on our expansion," Satyam Cineplexes Managing Director Deven Chachra said.
The multiplex chain, which currently operates 12 screens in three multiplexes in the national capital, now plans to go for lease model.
"We plan to have all the cineplexes in malls as the retail prices are going through the roof. This is very different from our current model wherein we own all our three cineplexes," he said.
Satyam plans to raise funds for expansion from either private equity or strategic alliance.
"We are looking for strategic alliance with overseas players as well for funding our expansion," he said, adding that nothing has been finalised yet.
"We would hit the bourses in next three years if we raise the capital through equity," he said.
On the back of the expansion plans, the company hopes that its revenue would increase from Rs 48 crore in the last financial year to Rs 325 crore by 2011.
Satyam is targeting tier II cities in the country instead of having more screens in the metros. This is mainly because of the high real estate prices in the metros.
Commenting on the future of the cineplex industry in the country, Chachra said, "We expect increased consolidation in the industry in the coming 3-5 years. Today, owner of a single multiplex is in the same boat as some time back an owner of a single screen was. Most of such guys would be acquired."
"In the long run, we would just have 3-4 operators owning 500-1000 screens," he added.
Eventually, Satyam is also planning to get into production of films. "If things go as per plan, we should be able to enter the film production business in another two years time. That is our eventual goal," he said.
To enhance the experience of the cine goers, Satyam has also started various services such as SkyBox, a 12-seater elevated box area with extra facilities like blankets.
He agreed that Satyam is little late in executing its expansion plans since other major cineplex players have already increased their screens manifold.
"We have already acquired 65 screens at Haridwar, Rohtak, Mysore, Greater Noida, Ludhiana, Gurgaon and Jalandhar. We will spend between Rs 200-250 crore on our expansion," Satyam Cineplexes Managing Director Deven Chachra said.
The multiplex chain, which currently operates 12 screens in three multiplexes in the national capital, now plans to go for lease model.
"We plan to have all the cineplexes in malls as the retail prices are going through the roof. This is very different from our current model wherein we own all our three cineplexes," he said.
Satyam plans to raise funds for expansion from either private equity or strategic alliance.
"We are looking for strategic alliance with overseas players as well for funding our expansion," he said, adding that nothing has been finalised yet.
"We would hit the bourses in next three years if we raise the capital through equity," he said.
On the back of the expansion plans, the company hopes that its revenue would increase from Rs 48 crore in the last financial year to Rs 325 crore by 2011.
Satyam is targeting tier II cities in the country instead of having more screens in the metros. This is mainly because of the high real estate prices in the metros.
Commenting on the future of the cineplex industry in the country, Chachra said, "We expect increased consolidation in the industry in the coming 3-5 years. Today, owner of a single multiplex is in the same boat as some time back an owner of a single screen was. Most of such guys would be acquired."
"In the long run, we would just have 3-4 operators owning 500-1000 screens," he added.
Eventually, Satyam is also planning to get into production of films. "If things go as per plan, we should be able to enter the film production business in another two years time. That is our eventual goal," he said.
To enhance the experience of the cine goers, Satyam has also started various services such as SkyBox, a 12-seater elevated box area with extra facilities like blankets.
He agreed that Satyam is little late in executing its expansion plans since other major cineplex players have already increased their screens manifold.
Lanco to invest Rs 18,000 cr for hydro power
Lanco Group has outlined an investment of about Rs 18,000 crore by 2015 to set up hydro power stations of 3,000 MW capacity one-fifth of the total capacity it seeks to achieve by then.
The group is already implementing five hydro projects of 742 MW capacity at various parts of the country including the 500 MW Teesta VI HydroPower project in Sikkim.
"Of the 15,000 MW which we plan to execute by 2015, about 3,000 MW is expected to be accounted by hydel power. We will invest about Rs 18,000 crore on hydro power initiative," Lanco Energy Manager (Contracts) Shailendra Mohan told reporters here.
Lanco Energy is a subsidiary of Lanco Infratech, the group's flagship company, engaged in power, infrastructure, construction and property development.
At present, Lanco Infratech has the capacity to generate 518 MW electricity and is developing projects having 7,500 MW capacity. The company has also identified projects of about 7,000 MW, as part of its vision to have installed capacity of 15,000 MW by 2015.
Lanco is implementing two hydle projects of 10 MW each and one 70 MW project at Himachal Pradesh, besides constructing two projects of 152 MW at Rambara and Phata-Byung in Uttarakhand.
The group's first unit of hydro power would come later this year from one of its project in Uttarakhand. Of the 518 MW capacity at present, 488 MW is accounted by gas-fired projects, 13 MW by wind projects and 17 MW comes from biomass.
Mohan said financing for the Teesta VI Hydropower Project has been tied up with a consortium of eight lenders lead by ICICI Bank. Other lenders include Canara Bank and Punjab National Bank.
The project, expected to cost Rs 3,000 crore, would be commissioned by 2012.
Teesta VI would sell the power to Maharashtra State Electricity Distribution Company through a 25-year Power Purchase Agreement.
The statutory clearances required from the state and Central Agencies have been obtained and civil construction work has started, he said.
The bids for engineering, construction, and procurement contracts would be invited by the group by mid of this year.
The group is already implementing five hydro projects of 742 MW capacity at various parts of the country including the 500 MW Teesta VI HydroPower project in Sikkim.
"Of the 15,000 MW which we plan to execute by 2015, about 3,000 MW is expected to be accounted by hydel power. We will invest about Rs 18,000 crore on hydro power initiative," Lanco Energy Manager (Contracts) Shailendra Mohan told reporters here.
Lanco Energy is a subsidiary of Lanco Infratech, the group's flagship company, engaged in power, infrastructure, construction and property development.
At present, Lanco Infratech has the capacity to generate 518 MW electricity and is developing projects having 7,500 MW capacity. The company has also identified projects of about 7,000 MW, as part of its vision to have installed capacity of 15,000 MW by 2015.
Lanco is implementing two hydle projects of 10 MW each and one 70 MW project at Himachal Pradesh, besides constructing two projects of 152 MW at Rambara and Phata-Byung in Uttarakhand.
The group's first unit of hydro power would come later this year from one of its project in Uttarakhand. Of the 518 MW capacity at present, 488 MW is accounted by gas-fired projects, 13 MW by wind projects and 17 MW comes from biomass.
Mohan said financing for the Teesta VI Hydropower Project has been tied up with a consortium of eight lenders lead by ICICI Bank. Other lenders include Canara Bank and Punjab National Bank.
The project, expected to cost Rs 3,000 crore, would be commissioned by 2012.
Teesta VI would sell the power to Maharashtra State Electricity Distribution Company through a 25-year Power Purchase Agreement.
The statutory clearances required from the state and Central Agencies have been obtained and civil construction work has started, he said.
The bids for engineering, construction, and procurement contracts would be invited by the group by mid of this year.
Bacardi eyes stake in Mallya company
BANGALORE: The world’s largest privately-held spirits company Bacardi will shed its slow- mover tag in India and pursue acquisition opportunities in the region. Bacardi could be in the reckoning if Vijay Mallya-led United Spirits (USL) went ahead with private placement of minority stake in the company.
“We have been 'very slow' in growth markets like India, but that is changing now. The Bacardi family and myself as chief executive are committed to it,” Andreas Gembler, Bacardi CEO, told ET.
He said the Bermuda-based drinks giant would look at inorganic growth opportunities provided it was profitable and carried distribution muscle.
Mr Gembler indicated that Bacardi will be interested in USL’s potential move for private placement of treasury stocks with a strategic partner. “I will not exclude that. Mr Mallya is a respectable competitor who knows what he is doing,” Mr Gembler said, while replying to a query, adding he had met India's liquor czar in international industry forums.
Bacardi’s Asia Pacific commercial operations director Harold Dyrvik, clarified that “nothing is at work with United Spirits at present”. Earlier this year, Mr Mallya had said that he received unsolicited interests from several suitors for buying a small stake in USL.
"They know that I hold treasury stocks and want to explore possibilities," he said. In January, ET reported that UK-based spirit giant Diageo, makers of Johnnie Walker whiskies and Smirnoff vodka, has held talks with USL for buying into USL.
It is believed that USL could offload treasury stocks representing 10-12% stake in the company. The treasury stocks were generated from the overlapping capital of merging group companies, especially Shaw Wallace (SWC), into USL.
The overlapping capital is banked in a trust with each share quoting a reserve price, which could be offloaded as a de-leveraging option. Sources said USL could be open to offering shares at a price band of Rs 2,500-3,000 per share, which constitutes a significant premium to the prevailing market price.
Meanwhile, Bacardi, with annualised sales of just around one million cases in India has lagged behind global peers Diageo and Pernod Ricard. The global giant has been scouting for buyout opportunities in a market heavily dominated by Mr Mallya's spirit empire.
It looked at some of the traditional spirits companies that have increasingly become regional players in a consolidating drinks business, but without a breakthrough till now.
Mr Gembler and Mr Dyrvik said India and China were the company's priority growth markets. In context, it may be mentioned that Bacardi recently effected a rejig of the domestic top management bringing in Mahesh Madhavan, earlier MD of Thailand operations, to head the Indian unit.
Bacardi, which is closely identified with the leading white spirits bands like Bacardi Carta Blanca Rum and Grey Goose Vodka, is in the midst of pushing its scotch portfolio represented by Dewar's and Aberfeldy into emerging markets.
“The message to the team is: premium, premium, premium. The thrust will be on the premium age profiles of Dewar's scotch, and not on the standard offering (Dewar's White Label),” Mr Gembler said.
Bacardi operating brand portfolio in India include locally bottled Carta Blanca white rum, Eristoff vodka, Bacardi Breezer RTD and imported brands like Grey Goose vodka, Bombay Sapphire gin, 42 Below vodka and Dewar's 12 year-old scotch.
“We have been 'very slow' in growth markets like India, but that is changing now. The Bacardi family and myself as chief executive are committed to it,” Andreas Gembler, Bacardi CEO, told ET.
He said the Bermuda-based drinks giant would look at inorganic growth opportunities provided it was profitable and carried distribution muscle.
Mr Gembler indicated that Bacardi will be interested in USL’s potential move for private placement of treasury stocks with a strategic partner. “I will not exclude that. Mr Mallya is a respectable competitor who knows what he is doing,” Mr Gembler said, while replying to a query, adding he had met India's liquor czar in international industry forums.
Bacardi’s Asia Pacific commercial operations director Harold Dyrvik, clarified that “nothing is at work with United Spirits at present”. Earlier this year, Mr Mallya had said that he received unsolicited interests from several suitors for buying a small stake in USL.
"They know that I hold treasury stocks and want to explore possibilities," he said. In January, ET reported that UK-based spirit giant Diageo, makers of Johnnie Walker whiskies and Smirnoff vodka, has held talks with USL for buying into USL.
It is believed that USL could offload treasury stocks representing 10-12% stake in the company. The treasury stocks were generated from the overlapping capital of merging group companies, especially Shaw Wallace (SWC), into USL.
The overlapping capital is banked in a trust with each share quoting a reserve price, which could be offloaded as a de-leveraging option. Sources said USL could be open to offering shares at a price band of Rs 2,500-3,000 per share, which constitutes a significant premium to the prevailing market price.
Meanwhile, Bacardi, with annualised sales of just around one million cases in India has lagged behind global peers Diageo and Pernod Ricard. The global giant has been scouting for buyout opportunities in a market heavily dominated by Mr Mallya's spirit empire.
It looked at some of the traditional spirits companies that have increasingly become regional players in a consolidating drinks business, but without a breakthrough till now.
Mr Gembler and Mr Dyrvik said India and China were the company's priority growth markets. In context, it may be mentioned that Bacardi recently effected a rejig of the domestic top management bringing in Mahesh Madhavan, earlier MD of Thailand operations, to head the Indian unit.
Bacardi, which is closely identified with the leading white spirits bands like Bacardi Carta Blanca Rum and Grey Goose Vodka, is in the midst of pushing its scotch portfolio represented by Dewar's and Aberfeldy into emerging markets.
“The message to the team is: premium, premium, premium. The thrust will be on the premium age profiles of Dewar's scotch, and not on the standard offering (Dewar's White Label),” Mr Gembler said.
Bacardi operating brand portfolio in India include locally bottled Carta Blanca white rum, Eristoff vodka, Bacardi Breezer RTD and imported brands like Grey Goose vodka, Bombay Sapphire gin, 42 Below vodka and Dewar's 12 year-old scotch.
Sita Shree lists at Rs30 on BSE
Wheat and pulses processor Sita Shree Food Products on Monday listed at Rs30 on the Bombay Stock Exchange.
The scrip opened at Rs30, which was also its issue price, and touched an intra-day high of Rs43.40 within the first few minutes of trade on the BSE.
On the National Stock Exchange, the scrip opened at Rs35 at a premium of Rs5 over its issue price, and touched an intra-day high of Rs43.40 in the early morning trade.
The company listed 2,20,36,800 shares of the bourses.
The scrip later parted with some gains and was trading at Rs41 on the BSE and Rs40.65 on the NSE at 1005 hrs. Over 1.06 crore shares changed hands on both the bourses.
Sita Shree had raised about Rs31 crore through the initial public offer. The company, which supplies its products to major retail industry players such as Pantaloon retail and Reliance retail, proposes to utilise the issue proceeds to part finance its Rs48.12 crore expansion plan.
Sita Shree’s product portfolio comprises wheat flour, maida, rawa, daliya, suji and chana dal amongst others and these are marketed under its own brand like Sita Shree regular and Sita Shree gold
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